Your Company Previously Averaged About 20% of Its Total Accounts

Multiple Choice

Your company previously averaged about 20% of its total accounts receivable in the "over 90 days past due" category and now has 35% in this category.All else equal,using the aging of accounts receivable method,the amount of the bad debt adjustment will:

A) fall,increasing the ending balance of the allowance account.
B) rise,increasing the ending balance of the allowance account.
C) fall,decreasing the ending balance of the allowance account.
D) rise,decreasing the ending balance of the allowance account.